Pilgrim's Pride to begin tender offer for Gold Kist's 10¼% notes

By Laura Lutz

Des Moines, Sept. 28 - Pilgrim's Pride Corp. announced that it plans to conduct a tender offer and consent solicitation for all of Gold Kist's 10¼% senior notes due March 15, 2014.

The offer, which is expected to begin Sept. 29, will be conducted alongside the company's equity tender offer to purchase outstanding shares of Gold Kist for $20 each.

In addition to offering to buy the notes, Pilgrim's Pride is seeking consents for amendments to some terms of the note indenture, including eliminating substantially all restrictive covenants and some events of default.

The tender offer expires at midnight ET on Oct. 27. The consent deadline is 5 p.m. ET on Oct. 13.

Holders may not tender the notes without providing consents.

Payment in the tender offer will be based on the bid-side price of the 2.625% U.S. Treasuries due March 15, 2009 on the price determination date plus 50 basis points. That price will include a $30 consent fee for notes tendered before the consent deadline.

Notes tendered after the consent deadline will receive the same amount, less the consent fee.

Pilgrim's Pride will also pay accrued interest up to but excluding the payment date for the notes.

The tender is subject to Pilgrim's Pride receiving consents from holders of a majority of the notes.

Lehman Brothers Inc. (800 438-3242 collect 212 528-7581) is acting as dealer manager and solicitation agent. Innisfree M&A Inc. (877 687-1874) is the information agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.